Asked by jesus salazar on Jun 12, 2024
Verified
A company allows its customers to use bank credit cards to charge purchases.When customers use the credit cards,the net amount is deposited in the company's checking account,less a 2.5% service charge.Assume that on April 13,the company sold $20,000 worth of merchandise to customers who used credit cards.Prepare the company's journal entry to record the credit card sales for April 13 assuming the company deposited the receipts that same day.
Service Charge
A fee collected for the provision of a service, often added to the base cost of the service.
Credit Card
A payment card issued to users as a method of payment allowing the cardholder to pay for goods and services based on the holder's promise to pay for them.
Journal Entry
A record in the books of accounts that shows a business transaction and its effect on the company's finances.
- Proceed with making journal entries pertaining to sales transactions, with an emphasis on both credit sales and credit card-based sales.
- Acquire knowledge about the impact of service charges on credit card sales operations.
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Learning Objectives
- Proceed with making journal entries pertaining to sales transactions, with an emphasis on both credit sales and credit card-based sales.
- Acquire knowledge about the impact of service charges on credit card sales operations.
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